Correlation Between Korn Ferry and Automatic Data

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Korn Ferry and Automatic Data at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Korn Ferry and Automatic Data into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Korn Ferry and Automatic Data Processing, you can compare the effects of market volatilities on Korn Ferry and Automatic Data and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Korn Ferry with a short position of Automatic Data. Check out your portfolio center. Please also check ongoing floating volatility patterns of Korn Ferry and Automatic Data.

Diversification Opportunities for Korn Ferry and Automatic Data

0.47
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Korn and Automatic is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Korn Ferry and Automatic Data Processing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Automatic Data Processing and Korn Ferry is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Korn Ferry are associated (or correlated) with Automatic Data. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Automatic Data Processing has no effect on the direction of Korn Ferry i.e., Korn Ferry and Automatic Data go up and down completely randomly.

Pair Corralation between Korn Ferry and Automatic Data

Considering the 90-day investment horizon Korn Ferry is expected to generate 1.33 times more return on investment than Automatic Data. However, Korn Ferry is 1.33 times more volatile than Automatic Data Processing. It trades about 0.04 of its potential returns per unit of risk. Automatic Data Processing is currently generating about 0.04 per unit of risk. If you would invest  5,650  in Korn Ferry on December 29, 2023 and sell it today you would earn a total of  944.00  from holding Korn Ferry or generate 16.71% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Korn Ferry  vs.  Automatic Data Processing

 Performance 
       Timeline  
Korn Ferry 

Risk-Adjusted Performance

9 of 100

 
Low
 
High
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Korn Ferry are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak technical and fundamental indicators, Korn Ferry may actually be approaching a critical reversion point that can send shares even higher in April 2024.
Automatic Data Processing 

Risk-Adjusted Performance

12 of 100

 
Low
 
High
Good
Compared to the overall equity markets, risk-adjusted returns on investments in Automatic Data Processing are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak fundamental indicators, Automatic Data may actually be approaching a critical reversion point that can send shares even higher in April 2024.

Korn Ferry and Automatic Data Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Korn Ferry and Automatic Data

The main advantage of trading using opposite Korn Ferry and Automatic Data positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Korn Ferry position performs unexpectedly, Automatic Data can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Automatic Data will offset losses from the drop in Automatic Data's long position.
The idea behind Korn Ferry and Automatic Data Processing pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
Check out your portfolio center.
Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.

Other Complementary Tools

Latest Portfolios
Quick portfolio dashboard that showcases your latest portfolios
Portfolio Rebalancing
Analyze risk-adjusted returns against different time horizons to find asset-allocation targets
Bond Analysis
Evaluate and analyze corporate bonds as a potential investment for your portfolios.
Portfolio Backtesting
Avoid under-diversification and over-optimization by backtesting your portfolios
Global Markets Map
Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes
Fundamentals Comparison
Compare fundamentals across multiple equities to find investing opportunities
Commodity Channel
Use Commodity Channel Index to analyze current equity momentum
Equity Forecasting
Use basic forecasting models to generate price predictions and determine price momentum
Bonds Directory
Find actively traded corporate debentures issued by US companies
Companies Directory
Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals
Competition Analyzer
Analyze and compare many basic indicators for a group of related or unrelated entities
Economic Indicators
Top statistical indicators that provide insights into how an economy is performing
Pair Correlation
Compare performance and examine fundamental relationship between any two equity instruments